Wabtec Expands Services Capabilities with Acquisition of RELCO Locomotives
January 08 2020 - 10:00AM
Business Wire
Wabtec Corporation (NYSE: WAB) announced today it has acquired
RELCO Locomotives, a long-established player in the locomotive
overhaul and maintenance industry. The acquisition expands Wabtec’s
freight services capabilities and capacity to support growth in the
remanufacturing and repair business.
“This acquisition will unlock tremendous value for our
customers, employees and shareholders,” said Rafael Santana, Wabtec
President and CEO. “The complementary combination of our portfolios
will create aftermarket services growth and the development of new,
innovative solutions to drive improved asset utilization and
reduced operating cost for customers.”
Pascal Schweitzer, Wabtec’s Group President, Freight Global
Services Organization, added: “Today marks an exciting day for
Wabtec’s services business and will further strengthen our
portfolio. By leveraging Wabtec’s robust remote monitoring and
diagnostics and predictive maintenance capabilities, as well as our
focus on lean continuous improvement, we will build upon RELCO’s
deep product offering, track record of service quality and
engineering creativity for locomotive modernizations. We are
excited about the long-term opportunities before us and are pleased
to welcome Mark Bachman and the RELCO team to the Wabtec
family.”
“The combination of our teams is an excellent fit,” said Mark
Bachman, Chief Operating Officer of RELCO. “Our combined companies
share a common culture and values rooted in innovation,
collaboration, inclusiveness and continuous improvement. Together,
we will expand our reach, strengthen our market capabilities and
better serve the rail industry.”
Financial Terms of
Transaction
The purchase price for the transaction was $29 million, on a
cash-free and debt-free basis. All conditions for the acquisition
are complete and the transaction will be accretive in year 1.
RELCO’s projected sales for 2019 are roughly $50 million.
About Wabtec Corporation
Wabtec Corporation is a leading global provider of equipment,
systems, digital solutions and value-added services for freight and
transit rail. Drawing on nearly 4 centuries of collective
experience across Wabtec, GE Transportation and Faiveley Transport,
the company has unmatched digital expertise, technological
innovation, and world-class manufacturing and services, enabling
the digital-rail-and-transit ecosystems. Wabtec is focused on
performance that drives progress, creating transportation solutions
that move and improve the world. The freight portfolio features a
comprehensive line of locomotives, software applications and a
broad selection of mission-critical controls systems, including
Positive Train Control (PTC). The transit portfolio provides
highly-engineered systems and services to virtually every major
rail transit system around the world, supplying an integrated
series of components for busses and all train-related market
segments that deliver safety, efficiency and passenger comfort.
Along with its industry-leading portfolio of products and solutions
for the rail and transit industries, Wabtec is a leader in mining,
marine, and industrial solutions. Based in Wilmerding, PA, Wabtec
has approximately 27,000 employees in facilities throughout the
world.
About RELCO
RELCO Locomotives, Inc. is a long-established company in the
locomotive leasing, rebuilding, and repairing industry with
operations in Albia and Cedar Rapids, Iowa. For over 50 years RELCO
has provided total solutions to railroads for locomotives,
modernizations and work train repairs; transit agencies; OEMs’
industrial companies; and government agencies throughout North
America.
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version on businesswire.com: https://www.businesswire.com/news/home/20200108005545/en/
Media Deia Campanelli 773-297-0482 or
deia.campanelli@wabtec.com
Investors Kristine Kubacki 412-825-1869 or
kristine.kubacki@wabtec.com
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